Just in the nick of time
Did the rate cut work? No.
Did the bailout of the monolines work? Yes.
The week so far in pictures (respectively the Dow, Dax and FTSE).
It seems that worries about losses to banks on wrapped bonds, the closure of the muni market, and yet more structured finance write downs were more pressing than rates.
Update. Fixing the monolines will take time, according to the New York State Insurance Department. I wonder how the markets will react if this bailout goes the way of the MLEC. Naked Capitalism certainly thinks the signs are not encouraging and Gillian Tett has some further comment on the balance between moral hazard and systemic risk.
Did the bailout of the monolines work? Yes.
The week so far in pictures (respectively the Dow, Dax and FTSE).
It seems that worries about losses to banks on wrapped bonds, the closure of the muni market, and yet more structured finance write downs were more pressing than rates.
Update. Fixing the monolines will take time, according to the New York State Insurance Department. I wonder how the markets will react if this bailout goes the way of the MLEC. Naked Capitalism certainly thinks the signs are not encouraging and Gillian Tett has some further comment on the balance between moral hazard and systemic risk.
posted by David Murphy at 13:27
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